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ABC

African Banking Corporation of BotswanaBSM:ABC Stock Report

Market Cap

P1.4b

7D

0%

1Y

-1.0%

Updated

17 Oct, 2021

Data

Company Financials
ABC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends0/6

ABC Overview

African Banking Corporation of Botswana Limited provides various banking products services to individuals, corporates, financial institutions, government entities, and international organizations in Botswana.

Price History & Performance

Summary of all time highs, changes and price drops for African Banking Corporation of Botswana
Historical stock prices
Current Share PriceP1.98
52 Week HighP0
52 Week LowP0
Beta0.0010
1 Month Change0%
3 Month Change0%
1 Year Change-1.00%
3 Year Changen/a
5 Year Changen/a
Change since IPO-1.00%

Recent News & Updates

Shareholder Returns

ABCBW BanksBW Market
7D0%0.8%0.1%
1Y-1.0%29.5%1.3%

Return vs Industry: ABC underperformed the BW Banks industry which returned 29.1% over the past year.

Return vs Market: ABC underperformed the BW Market which returned 1.3% over the past year.

Price Volatility

Is ABC's price volatile compared to industry and market?
ABC volatility
ABC Beta0.0010
Industry Beta0.68
Market Beta1

Stable Share Price: ABC is less volatile than 75% of BW stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: ABC's weekly volatility (0%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986377Kgotso Bannalotlhehttps://www.bancabc.co.bw

African Banking Corporation of Botswana Limited provides various banking products services to individuals, corporates, financial institutions, government entities, and international organizations in Botswana. It operates through three segments: Retail Banking, Commercial Banking, and Global Markets. The company offers savings, current, payroll, fixed deposits, business, and call accounts; personal, vehicle, and home loans, as well as overdrafts; and banking and term loans for SMEs, as well as SME asset finance for motor vehicles, heavy vehicles, office equipment, industrial machinery, and aircraft.

African Banking Corporation of Botswana Fundamentals Summary

How do African Banking Corporation of Botswana's earnings and revenue compare to its market cap?
ABC fundamental statistics
Market CapP1.44b
Earnings (TTM)P92.16m
Revenue (TTM)P533.57m

15.6x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABC income statement (TTM)
RevenueP533.57m
Cost of RevenueP1.01m
Gross ProfitP532.57m
ExpensesP440.41m
EarningsP92.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin99.81%
Net Profit Margin17.27%
Debt/Equity Ratio63.1%

How did ABC perform over the long term?

See historical performance and comparison

Valuation

Is African Banking Corporation of Botswana undervalued compared to its fair value and its price relative to the market?

15.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABC (BWP1.98) is trading above our estimate of fair value (BWP0.19)

Significantly Below Fair Value: ABC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABC is poor value based on its PE Ratio (15.6x) compared to the African Banks industry average (6.5x).

PE vs Market: ABC is poor value based on its PE Ratio (15.6x) compared to the BW market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABC is overvalued based on its PB Ratio (1.2x) compared to the XF Banks industry average (0.9x).


Future Growth

How is African Banking Corporation of Botswana forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as African Banking Corporation of Botswana has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has African Banking Corporation of Botswana performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABC has high quality earnings.

Growing Profit Margin: ABC's current net profit margins (17.3%) are lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have declined by 14.4% per year over the past 5 years.

Accelerating Growth: ABC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABC had negative earnings growth (-24.4%) over the past year, making it difficult to compare to the Banks industry average (11%).


Return on Equity

High ROE: ABC's Return on Equity (7.5%) is considered low.


Financial Health

How is African Banking Corporation of Botswana's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ABC's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: ABC has a low allowance for bad loans (72%).

Low Risk Liabilities: 88% of ABC's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABC has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: ABC's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: ABC has a high level of bad loans (5.5%).


Dividend

What is African Banking Corporation of Botswana current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ABC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ABC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ABC is not paying a notable dividend for the BW market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABC's dividend in 3 years as they are not forecast to pay a notable one for the BW market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Kgotso Bannalotlhe (42 yo)

4.17yrs

Tenure

Mr. Kgotso Elvis Bannalotlhe serves as Managing Director African Banking Corporation of Botswana Ltd. since August 7, 2017, and serves as Executive Director. He served as of Head of Corporate and Investmen...


Leadership Team

Experienced Management: ABC's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ABC's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

African Banking Corporation of Botswana Limited's employee growth, exchange listings and data sources


Key Information

  • Name: African Banking Corporation of Botswana Limited
  • Ticker: ABC
  • Exchange: BSM
  • Founded: 1986
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: P1.436b
  • Shares outstanding: 725.00m
  • Website: https://www.bancabc.co.bw

Number of Employees


Location

  • African Banking Corporation of Botswana Limited
  • BancABC House
  • Plot 62433
  • Gaborone
  • Botswana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 14:03
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.